1. Management accounting
1.1. Definition
1.1.1. the activity of preparing and using financial information about a company in order to support management decisions.
1.1.2. the development and interpretation of accounting information intended specifically to assist management in running the business.
1.2. Purpose
1.2.1. set the company's overall goals, evaluate the performance of departments and individuals
2. Tax accounting
2.1. Definition
2.1.1. accounting methods to prepare information on a person's income or a company's earnings for the tax authority, rather than, in the case of companies, for its executives, shareholders.
2.2. Purpose
2.2.1. the preparation of an income tax return
2.2.2. tax planning
2.2.2.1. anticipate the "tax effects" of business transactions and structuring these transactions in a manner that will minimize the income tax burden.
3. Definition
3.1. Accouting
3.1.1. the skill or activity of keeping records of the money a person or organization earns and spends.
3.2. Accounting information
3.2.1. the means by which we measure and communicate econocmic events
4. The accounting process
4.1. produces accounting information used by decision makers in making economic decisions and taking specific actions.
4.2. these decisions and actions result in economic activities that continue the cycle.
5. Financial accounting
5.1. Definition
5.1.1. a type of accounting that deals with providing financial reports about a company's profits, debts, cash flow, etc.
5.1.2. refers to information describing the financial resources, obligations, and activities of an economic entity
5.2. Purpose
5.2.1. assist investors and creditors in deciding where to place their scarce investment resources.
5.2.2. is used by managers and in income tax returns.